Manchester's Commonwealth Games is the ideal vehicle for north west firms to realise the potential of the web and harness the benefits of e-business.

Phil Cross, developer and marketing manager of Microsoft UK, said the technology is already available to allow companies to trade more efficiently in the long term and for short term events.

Using the Games as an example, he said: "If businesses can create a dynamic relationship between producers, suppliers, vendors and promoters it makes it easier and much more cost effective.

"For example, if a firm has placed an order for 1,000 badges or CDs with a second firm and this firm is unable to distribute them it would have a problem. But using web technology, the infrastructure could be in place whereby a backup provider could be on hand to provide the service.

"An 'Application to Application' transaction (as this would be) removes the cost of human intervention."

Common language

Microsoft, one of the main sponsors of the Games, is keen to get businesses using a generic language for computer communication - XML technology - for firms to work together.

Microsoft chief Bill Gates last year outlined the company's .NET philosophy to help firms break down the barriers for trading online.

The software giant has announced a new 'Accelerator Programme' to help advance the development of XML-style web services in the UK.

And four of its new partners - Accenture Technology Labs, Conchango, KPMG Consulting and ICL - have a strong base in Manchester.

Mr Cross added: "There is no real reason why these partners are based in Manchester although there is a strong technology base in the city.

"Our partners are spread around the country, which will help with our roll-out of the XML technology. For us to have a good base in the north can only be a positive.

Mike Creatorex, director of the .NET developer group at Microsoft added: "The opportunity is alive for XML web services and Microsoft .NET - there's space to grow the market, and the realms of possibility are staggering.

"Our .NET accelerator partners are leading the charge as we enter a new digital decade with Microsoft .NET

"I am constantly impressed by their significant real world experience."

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